₦airaland Forum

emmanuelewumi:
Background information about the new owners of Geregu

I checked this Senator's Wikipedia page.
It's not written anywhere that he has ever been a business person.

And his educational background is UNIMPRESSIVE.

He seems like a career-politician.

Putting the asset in his kid's names is CLEARLY to create a moat in the event of a corruption case.

This is why prosecution for corruption should be BIBLICAL—the entire family should be punished up to the FOURTH generation.

awesomeJ:
Even me, I'm beginning to get confused.

@mallam.Omonile1 and @Nam.aster, you guys should please carry on this debate.


Also talk about the case when at the point of filing returns for the N30m, I might still claim to plan on reinvesting before the 12 months elapses.


But the surest interpretation will be what the guidelines they release next year.

From what Taiwo said, once you repurchase, it's a new transaction altogether.

But a lot of people especially @streetinvestor2 don't trust Taiwo because of his suit.

You are RIGHT.

A serious committee would have released a comprehensive implementation guidelines BEFORE the law comes into effect.

Not questionable TV interviews.

In your case, your BEST bet is to talk to a Tax Consultant (lawyer or accountant) even after they release the guidelines.

You do BIG transactions.
Oyedele likes people who do BIG transactions.

Some people are overly PESSIMISTIC about the new tax laws based on wrong info.
Others, surprisingly, appear to be overly OPTIMISTIC about the new tax laws based on wrong info.

BOTH should be corrected.

People should make plans based on CORRECT info.

mallamOmonile1:
I am of the opinion that the N30m is a proportion of the proceed withdrawn which will be used to determine the proportion of the realised gain of N50m that will be taxable.

Therefore, since the proceed is 100m out of which only 30m (30%) was withdrawn, then ONLY 30% OF THE REALISED GAIN OF N50m becomes taxable in the current year of assessment.

I see where you are coming from.
But it's NOT correct.

This is where you are quoting from:

...provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection

But you are applying a percentage to the Gain and NOT the proceeds as specified.
And that would result in lower tax compared to applying it to the proceeds as SPECIFIED.

Secondly, your scenario is ENTIRELY different from the one awesomeJ brought forward.

In his scenario, there are 3 different transactions.
First, there was a sales proceeds of #100M and a gain of #50M which represents transaction 1.

Then a full reinvestment (purchase of shares) of #100M which represents transaction 3.

Then a sale proceeds of #30M with a Cost of #30 which represents transaction 3.

The transactions in his scenario are CLEAR and easy to track.
There is ZERO need to complicate it with computations of percentages and proportions.



But YOURS require that.

Here's your scenario:

1. Sales proceeds of #100M and a gain of #50M.
2. He withdraws #30M and reinvests #70M.
3. Then you can calculate proportions.

In this case you have a formula of where Sales Proceeds = 50% Cost + 50% Gain.

So if he withdraws #30M, the taxable proportion would be 50% or #15M.


This should make everything CLEARER now.

awesomeJ:
You're not clarifying.

Your analysis is saying N50m is taxable, and you're still saying N30m is what's taxable.

You haven't gotten this flow perfectly yet.

No.
My analysis says #50M is chargeable Gain.
But #30M is TAXABLE.

Understand:

NOT all chargeable gains are taxable.

The flow is PERFECT.

awesomeJ:
Your position is this:

In my two tranch example:

Total purchase for both tranches is N150
Total sale is N200m

Therefore N50m is tax liable.

I think that's correct.

Now what if tranche 2 is me buying new shares with the N100m proceeds from tranche 1, then I sell and withdraw N30m.

Then total purchase becomes N80m (first N50m plus the cost of the N30m portion I'm selling), while total sale is N130 (the first 100m plus the second N30m)

Taxable profit would then be N130m - N80m = N50m.

Are you saying they will charge me for a N50m tax when I'm only withdrawing N30m.


Don't you think this already violates the reinvestment relief the law provides?


Another nuance is by the time I file tax returns in March 2027 for instance if I claim I sold the shares in November 2026 and would still reinvestment before November 2027, do you think I'd still be tax liable?


Again, we're simply debating ideas for better understanding, no grouse at all.

Let's break it down.

First deal is a #50M gain from a sales proceeds of #100M.

Second deal is a FULL reinvestment of #100M.

Third deal is a sale proceeds of #30M with ZERO gain or loss.

Your AGGREGATE would look like:

#50M gain +/-#0 =#50M.

So Tax Authorities would assume that #50M is your Chargeable gain from your activities for that year of assessment.

And ordinarily, the full #50M would be subjected to tax.

But since you only withdrew #30M, that's the portion that would be subjected to tax.

It's just like the law says.

awesomeJ:
I understand you sir.

I'm not saying reinvestment wipes out the gain.

I'm saying reinvestment makes the gain non liable to tax.

Isn't that what the law says?

NO.

The purpose of the REINVESTMENT Clause is to RETAIN money in the NGX.

The way you explained it made it sound like Oyedele collected billions from Tinubu just to design a BIG, FAT and extremely obvious LOOPHOLE.

The tax law FIRST looks at individual transactions.
Then AGGREGATE portfolio.
Then what you did with ANY gains from that portfolio.

What that means in numbers

Scenario 1.

1. A first transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL REINVESTMENT.

3. That's EVERYTHING you did in the NGX that year of assessment.

Your tax liability related to CGT for that year would be ZERO.

Scenario 2.

1. A first transaction of #100M Sales Proceeds from a #50M cost price. That's a potentially chargeable gain of #50M.

2. FULL reinvestment.

3. Sold new acquisition of #100M at #100M.

4. Withdraw.

5. PAY TAX!

That's because the New Laws are applicable on NET GAINS.
And for Net Gains to be a factor, you must be looking at a BIGGER picture, i.e, the portfolio.

So, first transaction has a gain of #50M.
And you broke even in the second deal so made #0 gain or loss.

Net Gain for your portfolio would be #50M-#0 =#50M.

That #50M would be subjected to tax.

awesomeJ:
Also @Namaster, Imagine if I bought shares with N50m, sell for N100m, reinvest N90m and withdraw N10m.

Your interpretation expects me to pay the entire N10m as tax?

Abi how would you calculate?

If you used aggregate purchase, you would get N140m and sales of N100m, would you interpret that as a N40m loss when in reality there's a N50m profit?


I'm not trying to have a heated debate with you .

I would just like you to analyze different scenarios with your interpretation, so that we can all learn.

Also did you notice that the term aggregate despite being only used for sale, isn't even relevant to reinvestment. It's only relevant to determine whether or not you've reached N150m in sales for the year.


Please teach us. Since the very next market session will already be under these new laws.

The second part of the Section 34 I quoted addressed this:
(iii) proceeds from such disposal, notwithstanding the threshold in (i), are reinvested within the same year of assessment in the acquisition of shares in the same or other Nigerian companies, provided that tax shall accrue proportionately on the portion of the proceeds which are not reinvested in the manner stipulated in this subsection
[i][/i]

Another thing to note is that the issue of Capital Gain ONLY arises when there is actually a SALE.

If you used #50M to make #50M then reinvested #90M and took out #10M.

Only 1 transaction matters for CGT in this scenario. And that's the FIRST one.

AwesomeJ, understand this:

I am NOT trying to debate anything with you.

I am attempting to RECTIFY the wrong information you passed that could MISGUIDE people and potentially land them in legal trouble.

People could follow it and get in SERIOUS trouble.
Especially the rich people who do BIG transactions in the the NGX.

Best thing for people like that is to get a Tax Lawyer or a Tax Accountant.

Now on your first post:
What the tax man has said is that once you reinvest, your cost basis becomes the new N100m, you thinking it'll be aggregate of all you purchased is an assumption.

You are interpreting this to mean that a REINVESTMENT means a blank state.
That reinvestment wipes out the previous gain.

WRONG!

First thing you need to understand is that CHARGEABLE GAIN is computed on INDIVIDUAL transactions.
But the applicable taxes would be based on the AGGREGATE Portfolio.

awesomeJ:
Yes sir.

If I buy a stock with N50m in January, and by June, it's done 100% and is then valued at N100m

Even if I sell and have no plans to remain on the market, I will sell for N100m, then repurchase for N100m and resell for N100m.


Two transaction tranches:.
First leg: I entered at N50m and exited at N100m , N50m gains .

It won't be taxable cos I'm deploying the process into the second tranch.


Second tranch:

I entered and N100m and exited at N100m

No profits hence no tax.

This is EXTREMELY WRONG!
And it could get you in trouble with Tax Authorities.

If Oyedele devised a system that could be gamed in such a SIMPLISTIC way, he would NOT be the second-most HATED man in Nigeria.

CORRECTION:

First thing you must understand is that the gain chargeable to tax would be the based on the AGGREGATE transactions on your portfolio.
NOT individual transactions.

So based on your example,
First transaction has Sales Proceeds of #100M and Cost Price of #50M.

Second transaction has Sales Proceeds of #100M and Cost Price of #100M.

Calculation would look something like this:

Aggregate Sales Proceeds= #200M (#100M + #100M)
Aggregate Costs= #150M (#50M + #100M)

Chargeable Gain is STILL #50M.

You'd be somersaulting for NOTHING.

The ONLY time you'd NOT have to worry about CGT is when you are continuously REINVESTING with no intention to take out any money from the gains you made on NGX.

Which seems to be your own PLAN.

But for people who intend to withdraw anything from the gain, that strategy is a WASTE of time.

Another thing to NOTE is the timeline when the REINVESTMENT clause kicks in.

[b[i] Section 34(iii) proceeds from such disposal, notwithstanding the threshold in (i), are reinvested within the same year of assessment in the acquisition of shares in the same or other Nigerian companies.
[/i]][/b]

So when you advised people to consider spacing their transactions over weeks, let them know to keep the year of assessment in mind.

"Stop overreacting, he's just my friend.

"



That's ALL any man needs to hear.
And that's where I STOPPED reading.


That is the LANGUAGE of cheaters all over the world.

That sentence is LOADED.

First, it BELITTLES him.
Then, it SHIFTED the blame onto him.
Then, it deftly EXCUSES her infidelity.

In this Nigeria that people get KIDNAPPED for taking the wrong route to their own BATHROOM, one WORHE left her base in Lagos to cook for another man and his family during Christmas Holiday.

And he's a JUST a friend?!


Madam went for her INTRODUCTION.

The WIMP needs to respect himself and MOVE ON!

Nigeria is such a COMPREHENSIVE sheeethole!

You CAN'T drive on the roads without getting kidnapped.
You CAN'T expect any emergency services.
Now, you can't even FORNICATE in peace.

What a DISASTER!

God BLESS Omoyele Sowore for this particular slice of TRUTH.

The PDFile says White South Africans were being persecuted and he gave them EXPRESS entry into the US along with FREE plane to fly them in.

PDFile says BLACK Christians are being persecuted in Nigeria and he BOMBS them on Christmas Day.

BRAINWASHED Religious FANATICS say Hallelujah.

Psalm 121:1-2 according to the religious MOWRUNS in Nigeria:

"I lift up my eyes to the hills— where does my help come from?
My help comes from the PDFile in the White House, the RAPER of women and children".

RUN!


First of ALL, NEVER in your life assume financial responsibility for ANY woman that is NOT your daughter or LAWFULLY wedded and VERIFIABLY loyal wife.

Secondly, this part:

"she had already informed me of a large amount needed to sort her academic papers, which I agreed to pay."

This means this girl is DMUB!
She's attending a PRIVATE School where they have better resources and fewer students and she's still FAILING!

She FAILED and you had to BAIL her out by BRIBING a Lecturer.

You DON'T want to mix with that level of DMUBNESS!

You are paying for her EDUCATION and still paying for her FAILURE!

MADNESS!

Plus, if she's sorting one lecturer with money; you can rest assured she's sorting another lecturer with DOGGGGY.

Then, there's her School BoyFriend whom she visits regularly for "tutorials".



This girl is clearly NOT studious.
So you are just FINANCING her frolicking.

Despite the fact that you're SPONSORING her entire life since you met her, she's UNGRATEFUL!

She's INSULTS you and call you STINGY!
She BELITTLES you and says you're NOT doing enough just because you did NOT shoulder the financial BURDEN of her whole lineage in addition to shouldering hers.

And she's already hitting you with the International Anthem of ENTITLED GOLDDIGGERS all over the world:

"Your money is OUR money".


While contributing absolutely NOTHING to your life.

Take stock of what she's contributed to your life and see how you've been SHORTCHANGING yourself.

I bet the ONLY thing you've been getting is a LACKADAISICAL gander at a SECOND-HAND pussshy.

You need to VANISH!

IF you make the HORRIBLE mistake of marrying this girl, you will age 5 DECADES in your first year of marriage.

You will SHOULDER the financial problems of her entire family and it still WON'T be enough.

You will be UNHAPPY.
And married to an ENTITLED woman who's NEVER going to be satisfied.

And chances are very HIGH that this lady would want to be a FULL-HOUSE WIFE and continue the baby girl lifestyle she feels entitled to.

You will WORK overtime in a FUTILE attempt to make enough money to please her.

You will NEVER be at home.
And you know what that means.


Your first-born would have an UNCANNY resemblance to that your neighbour that seemed UNUSUALLY friendly with your stay-at-home wife.

RUN!

DEATH by STUPIDITY!

Pure MADNESS!

First of all, the idea that houses in Lagos is somehow ASTRONOMICALLY more expensive in Lagos than in other places is WRONG!

Go to Enugu. Houses in Enugu are on the same price point as those in Lagos. Yet, Enugu does not have HALF the economic opportunities that Lagos have.

Same thing is obtainable in Osogbo, Osun state.
Houses there are NEARLY on the same price level as those in Lagos.

YET, Osun state does not have half the economic opportunities in 1 LCDA in Lagos State.

The only places that you would really FEEL the price differences in Lagos is if you're looking for apartments in the really HIGHBROW areas of Lagos State.

One reason people complain about house rents in Lagos is because majority of people in Lagos are TENANTS in Lagos but have HOMES in their own states.

They have not had the NEED to rent apartments in their OWN states.
Otherwise, many of them would REALISE that the MADNESS of exorbitant house rents is NOT limited to Lagos State.

ANOTHER reason that would explain the house rents in Lagos is the fact that Lagos is the SMALLEST state in Nigeria when it comes to landmass yet it's simultaneously the MOST POPULOUS state in Nigeria.

TOO MANY people are jostling for TOO LITTLE space.

Then, there is simply the matter of the FACT that Lagos is the LARGEST economic hub in West Africa.

Rents in such places would RIGHTFULLY be more expensive than in the backwater places that people hardly hear about.

Just like you CANNOT expect rents in Silicon Valley or Hollywood to be the same as rents in places like Alaska.

Same way you cannot expect prices in Lagos to be similar to Ekiti or Abia state or Gombe state.

Especially, when you consider the fact that Lagos doubles as both the Silicon Valley and Hollywood of Nigeria.

Finally, there are the DEMONS called REAL ESTATE AGENTS.
They are CRIMINALS and CROOKS that should be expunged from the housing market.

But they are NOT exclusive to Lagos.
They are EVERYWHERE.

My point is that RENTS in Lagos are WORTH IT.
They are JUSTIFIABLE.
Plus, the difference in price between Lagos and any other halfway decent city/state is NOT that much compared to MASSIVE difference in economic opportunities and amenities.

ALL that being said, I CANNOT stand Lagos.

Is this BLOGGER illiterate or just plain MISCHIEVOUS?!

The stats CLEARLY states most viewed LIVESTREAMERS yet this blogger is reporting it as the third most viewed CHANNEL.

ILLITERATE!

Obviously, being the third-most viewed LIVESTREAMER on YouTube while selling SCAM is still an achievement.
But do NOT exaggerate.

Took 3 seconds to spot the exaggeration.
Most viewed channels WITHOUT listing MrBeast?
Scam!

In a true list of the most viewed CHANNELS in the world, this SCAMMER'S channel would not make top 50.

This is simultaneously PATHETIC and HILARIOUS!

First of all, that's a TATTOO on her breast.
Likely NOT the only tattoo she has.
If Ope knows what's good for him, he'll remain INCOGNITO.

Secondly, this:

"...Ihave been dreaming for ope since 2019"


Smart people will ask "what changed in 2019?'

She hit The Wall, that's what.
She could feel the wall closing in.

She was done playing the field.
And ready to settle down.

When she was 18-25 and getting attention from men of her spec, she did NOT dream of Ope.

That's why she waited 13 years to dream of Ope.

Thirdly, this:
"Baba told me..."

Ope, if you are reading this, RUN!

NO sensible man should have ANYTHING to do with a supposedly EDUCATED woman who still dabbles in VOODOO.

Imagine in the 21ST Century and an educated person is paying for a Native Doctor to help her find someone called Ope with no surname or picture.



That level of STEWPIDITY could be contagious.
AVOID!

Rather than paying for a Private Investigator, madam went to a Baba.

MADNESS!

Her OCCULTISM and TATTOOS are HUGE Red Flags.

Ope NEEDS to run.

Finally, it is SHOCKING to see a grown-ass woman think that she'd met her SOULMATE at 13.

Both of them were barely on the cusp of PUBERTY.
Hormones were raging. And their brains were barely fully formed.

It speaks of the ULTIMATE DESPERATION for someone to think that they met their soulmate, someone they knew for a few weeks, at that age.

Plus, the "love" at that age is still INNOCENT.
It has not been coloured by past experiences and BETRAYALS.

I am 100% certain that if Ope appears right now, he'll NEVER live up to the memory of Ope in this lady's mind.

RESENTMENT will build up in no time.


FINAL FINALLY, ALL other sensible men should take note of this lady and AVOID her!

You don't want to play second fiddle to a 20-year old memory.

You don't want to be with someone that is DESPERATELY pining for the memory of a 13-year old boy that no longer exists.

Thankfully, she was kind enough to include her pictures.
Makes it easier to RUN!

It's a MANIPULATION technique called Trickle Truthing.

They ALL use it.

First, comes the BLATANT lie—female friend.

When that lie becomes unsustainable, then a little TRICKLE of truth—It was actually a MAN but nothing happened.



If you continue to press her, another truth will trickle out—something did happen but it was JUST a kiss.

Then, it'll turn to just BJ and no penetration. They didn't even get naked.

Then, it'll become they did get naked but he just RUBBED the tip on clit.

Then FINALLY, it'll be we had sex but it was just ONCE.



MEN who still marry today are just deceiving themselves.

The RACISTS and MISOGYNISTS will have sense by FORCE!



Biden and Harris FORGAVE massive amounts of Student Loan Debts.

The PDFile they elected wants to REMOVE money from their salary BEFORE they even see it.

Everybody will have SENSE by force.

Man NEEDS to do a DNA test ASAP!

Marriage of 1 year and the HEARTLESS wife already abandoned him and a NEWBORN.

Clearly, that's a woman with TERRIBLE morals and ZERO love for the guy.

Plus, the man just has the appearance of someone that's BEGGING to be the victim of Paternity Fraud.

He NEEDS to do a DNA test before he ends up SINGLEHANDEDLY raising a child he did NOT conceive.

The Ukrainian Military are incredibly RESOURCEFUL and RESILIENT.

Especially, their Intelligence Forces.

They have assassinated 3 TOP Russian Military Leaders.

Plus, that DRONE ATTACK that was secretly launched and perfectly EXECUTED on Russian Airbase SHOCKED a lot of people.
Most of all, the Russian Military.

A LOT of people don't understand how POWERFUL the Ukrainian Military is because they are fighting a Military BEHEMOTH like Russia.

This is EVIL and CRIMINAL!

Previous post on the issue:

IF Tinubu wins in 2027, Nigeria would look like HELL and Nigerians would DESERVE it.

This is a government of ZERO ACCOUNTABILITY marked with a level of INSECURITY we've NEVER seen before in the history of Nigeria.

YET Nigerians are being gradually STRANGLED under the weight of MULTIPLE taxes.

First, he removed fuel subsidy. So motorists have to pay MORE for fuel. And non-motorists have to pay more for FARES.

NOBODY knows where the savings on fuel subsidy is going.

Then, he FLOATED the Naira and car importers have no option but to pay what was previously considered BLACK MARKET RATES to import cars and car buyers have to PAY through the NOSE to buy 15-year old cars.

Then, there is the Tinted Permit which is basically another form of TAX.

NEXT year, the 5% SURCHARGE (read tax) on all fuel purchases would likely be implemented.

Then, they'd TOP it off with another TAX in the form of Motor Recycling Fee.

In addition to that, he also wants Exporters to pay for a PRE-EXPORT Certificate which will definitely be passed on to Importers who'll pass it on to Final Car Buyers.

This is ALL in addition to the 7.5% VAT you'll need to pay when you buy a car.

To buy and own a car next year, you'll NEED to sell your kidney, your mother's kidney, your father's kidney and your Grandma's kidneys too.

ONLY good thing is that your Village People would AVOID you 'cause they won't like the way you'd be eyeing their kidneys too.

Tinubu is trying to MURDER Nigerians!

IF Tinubu wins in 2027, Nigeria would look like HELL and Nigerians would DESERVE it.

This is a government of ZERO ACCOUNTABILITY marked with a level of INSECURITY we've NEVER seen before in the history of Nigeria.

YET Nigerians are being gradually STRANGLED under the weight of MULTIPLE taxes.

First, he removed fuel subsidy. So motorists have to pay MORE for fuel. And non-motorists have to pay more for FARES.

NOBODY knows where the savings on fuel subsidy is going.

Then, he FLOATED the Naira and car importers have no option but to pay what was previously considered BLACK MARKET RATES to import cars and car buyers have to PAY through the NOSE to buy 15-year old cars.

Then, there is the Tinted Permit which is basically another form of TAX.

NEXT year, the 5% SURCHARGE (read tax) on all fuel purchases would likely be implemented.

Then, they'd TOP it off with another TAX in the form of Motor Recycling Fee.

In addition to that, he also wants Exporters to pay for a PRE-EXPORT Certificate which will definitely be passed on to Importers who'll pass it on to Final Car Buyers.

This is ALL in addition to the 7.5% VAT you'll need to pay when you buy a car.

To buy and own a car next year, you'll NEED to sell your kidney, your mother's kidney, your father's kidney and your Grandma's kidneys too.

ONLY good thing is that your Village People would AVOID you 'cause they won't like the way you'd be eyeing their kidneys too.

Tinubu is trying to MURDER Nigerians!

WTF is going on here?!

Someone lives in YOUR house rent-free.
CHEATS on you.
BELITTLES you.
INSULTS you in private and in PUBLIC.
She TORTURES you mentally and emotionally.

And I'm 100% certain you are enduring all this NONSENSE without getting laid.

Yet you are HESITANT to throw her out.

You are a BROKEN man!
You were broken by a WORHE too.

Here's your SALVATION:
1. Call a MALE friend, colleague or sibling to come to your place. NOT a weak person like you.

2. Call her family/friend to come pick her up.

3. PACK her bags MINUS everything you bought for her.

4. You and your male HELPER should throw out ALL her belongings.

5. NO NEGOTIATIONS!

6. If she INSULTS you, keep quiet. You are USED to that.

7. If she TOUCHES you, do something that'll make us read about you on Nairaland FrontPage.

8. DO EVERYTHING TODAY!

9. If you succeed, thank your helper PROFUSELY and buy him a couple of drinks.

10. Get and READ these 2 books: No More Mr Nice Guy and The Manipulated Man.

The ENTIRE American infrastructure is protecting PDFiles. Or more specifically, one PARTICULAR PDFile.

The FBI colluded with the DOJ and the COMPROMISED American Media to protect The PDFile they elected.

What a SHAME!

This same ROTTEN society is now masquerading as the Christian Capital of the world.

MADNESS!

A country where NOT 1 but TWO of their Presidents are PROVEN PDFile.

First of all, NOBODY is going to enter your account and move your money.

Even if you are LIABLE to tax, they would not just enter your account and DEDUCT your money.

Secondly, your bank balance is IMMUNE to income tax.

Even if you have #100 BILLION balance. You would not be subjected to Income Tax for the year.

But if you are sending #500K+ for purchases, keep receipts. You could be liable to Value Added Tax and they'd want to see that you are paying those.

Very clearly a FARCE!

It's a SHAME what Anthony Joshua would DEBASE himself in such a way.

In a REAL boxing match, it would have ended in MANSLAUGHTER.